Realtors and government representative at a seminar on Sunday expressed opposing views on the soaring land and apartment prices.
Land Minister Saifuzzaman Chowdhury blamed the real estate companies for an abnormal rise in land prices.
He made the remarks when businesses identified high prices of land and construction materials as impediments to the development of the housing sector.
Real estate sector leaders also demanded the government create avenue so that the housing sector can be developed outside Dhaka as it is now heavily concentrated in the capital.
Responding to their demands, the minister said the government wants to develop township outside Dhaka. But the government cannot take various decisions so quickly.
He suggested the realtors shift to the peripheries by forming consortium and focus on affordable housing for the people.
"The price of land has gone up because of you (realtors). I'm sorry to say that now the land price is three times higher than construction material price," said Mr Saifuzzaman.
He also said it is the housing companies which have made the landowners such greedy through unfair deals. The government has nothing to control land price as it is a matter of demand and supply, he added.
Regarding the demand for 3.0 per cent interest on home loans, he said the depositors cannot keep their money at an interest rate of 3.0 per cent.
"How the banks can lend at 3.0 per cent interest rate?" he asked.
The minister was speaking as the chief guest at a seminar on 'Challenges of Real Estate in Urbanisation and Decentralisation' at a city hotel.
Dhaka Chamber of Commerce and Industry (DCCI) organised the seminar. The minister also said the government is not any competitor of the real estate businesses rather it has been playing its role as the facilitator and regulator.
"But the government must avail the opportunity where it is untapped," he added.
In his speech, DCCI president Osama Taseer said land prices in various areas of Dhaka including Gulshan and Baridhara have gone up three times over the decade.
"The prices of construction materials have also increased 2.5 times which are major impediments to the development of the sector," the DCCI president said.
Real Estate and Housing Association of Bangladesh (REHAB) president Alamgir Shamsul Alamin said the government acquired land in some places in Dhaka at the rate of Tk 2,000 per katha in 1963.
But now it sells per katha of land at Tk 20 million to the private sector developers, he said, questioning the fairness of government's policy on selling lands at such high prices.
He said the city's population is increasing at a rate of 3.7 per cent in Bangladesh which is higher than any other country in South Asia. The urban population will reach 100 million by 2041.
"Decentralisation should be thought of seriously and not a verbal one only. We must stop migration to the cities by offering better benefits including lifestyle, education, housing, healthcare and other amenities in rural areas," he said.
Even many businesses are shifting to Dhaka from Chattogram, which was much vibrant than Dhaka once upon a time due to administrative, banking and other necessities, Mr Alamin said.
He suggested increasing the decentralisation system by constructing multimodal communication system and setting up better hospitals, schools, universities, and relocating factories outside Dhaka.
Terming Bangladesh one of the most concentrated economies in the world, the DCCI president mentioned that 80 per cent of the export-oriented industries are in greater Dhaka while 61 per cent deposits come from Dhaka and 22 per cent from Chattogram.
About 67 per cent loan is disbursed in Dhaka and 19 per cent in Chattogram, he added.
"Although policy measures have been taken for decentralisation, those were never implemented due to overdependence on the central government, lack of administrative and political will, inadequate infrastructure and poor communication system," said Mr Osama.
Dhaka North City Corporation Mayor Atiqul Islam said the major challenge is to make the city safe. The monitoring system is absent here, he added. Citing the plan for the newly added unions with the city corporations, Mr Atiq said there is also unplanned utility line set up plan which has been opposed.
Panellist Salim Akhter Khan of Asset Development and Holdings said liveability is the major challenge. Besides, the government has become the competitor of the private housing sector. But it should be the facilitator and work to enhance the liveability index, he added.
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